Global Low-emission Vehicle Market - Growth, Trends, and Forecast (2018 - 2023)
Whether diesel or gasoline powered, all combustion engines expel noxious gasses such as unburned hydrocarbons and particulates into the air: the by-products of burning fuel that are discharged from the exhaust pipe into the atmosphere. A lot of leading automobile companies are getting into low-emission vehicle market. India’s homemade automobile maker, Mahindra and Mahindra, acquired the Reva electronic car company to raise its stand in the world of introducing low-cost and efficient low-emission vehicles.
Rising environmental awareness of the customers, government incentives, and the race among automakers to come up with a greener vehicle are the major factors influencing the booming low-emission vehicles market.
Government Initiatives for a Cleaner Environment
Mordor Intelligence analysts predict that automotive emissions are the major contributors of pollution-causing gases. Nearly 50% of the pollution-causing gases are generated due to automotive exhaust emission. The life-threatening levels of pollution have caused the automotive regulatory authorities and governments of several countries to take decisions to tackle the menace. The authorities have toughened the emission standards of the vehicles, and the governments have come forward with many incentives and subsidies for the customers and manufacturers purchasing and manufacturing low-emission vehicles. The governments are also planning to control emission by encouraging green vehicle fleet in their respective regions. For instance, the British Government and the British Department of Transport have taken an initiative to replace the existing fossil fuel-based Black Cabs in London with electric models. The new manufacturing plant in the country will manufacture the electric variants of the Black Cabs and the government has offered subsidies to the drivers buying them.
In the 1960s, government regulations were instituted to control automotive emissions and reduce the levels of pollution in the atmosphere. Over the years, engineering developments, such as the three-way catalytic converter and computer-controlled electronic fuel injection, have reduced automotive emissions to less than 5% of what they were 40 years ago.
Inferior Electric Vehicle Technology
Though the technology used in electric vehicles has evolved considerably since its inception, the present-day technology fails to replace the fossil fuel-based engines completely. Even though range of electric vehicles has increased reasonably over the last few years, the long recharge time required by these vehicles is hindering the market from achieving a higher growth rate. Moreover, the lack of appropriate charging infrastructure is yet another bottleneck for the industry. However, governments of several countries are planning on supporting the electric and low-emission vehicle sales by increasing the charging infrastructure network in the respective countries.
Delhi (India) and Beijing (China) are struggling to keep the pollutions levels low. Of late, governments of these two countries are introducing several regulations to curb the pollution and bring in the new generation of electronic vehicles. In a recent development, the Delhi government is set to announce rules to scrap 15-year-old private vehicles in the national capital as directed by the National Green Tribunal as these were increasing the pollution level of the city and the government is keen to introduce more CNG-fitted vehicles on the roads. On the other hand, the Indian government is keen on providing subsidies to automobile makers so that they get motivated to manufacture electronic vehicles.Major Players: MERCEDES, HONDA, PORSCHE, FORD, TOYOTA, TESLA, BYD, REVA MAHINDRA, amongst others
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